RBS settles ABN money laundering charges

by Gill Montia

Story link: RBS settles ABN money laundering charges

Royal Bank of Scotland (RBS) has agreed to pay $500 million to settle a money laundering case that relates to its acquisition of ABN Amro in 2007.

ABN has since faced charges in the US for allegedly flouting sanctions on cash transfers from countries with links to terrorist organisations, such as Libya and Iran.

It is understood that the settlement will allow for the charges to be formally dropped in 12 months’ time.

Following its overpriced acquisition of ABN, the now 84% state-owned RBS went on to post a £24.1 billion loss for 2008 as it struggled with its own and the Dutch bank’s exposures in the credit crisis.

Yesterday, the group announced a further 2,600 UK job losses as part of a five-year restructuring plan that has already cost almost 23,000 jobs worldwide.